Here’s a look at what it will cost you the most and the least in 2023

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There was no shortage of economic uncertainty over the past year.

The Russian invasion of the Ukraine disrupted the world’s fuel supply and caused gasoline prices to reach record levels. Aggressive interest rate hikes by the Bank of Canada reinforced recession fears among Canadian consumers. And inflation remained an underlying issue of concern.

As Canadians worry about paying the costs of feeding their families, living under a roof and driving their cars, they look to a new year with the hope of financial relief.

Here’s a look at what things will cost in 2023.


Even as lower gasoline prices offered some much-needed relief over the holidays, Canadian pump costs have spiked to record levels in 2022. An industry analyst predicts the cost of gasoline will rise again in the new Year.

Dan McTeague, president of Canadians for Affordable Energy, told that Canadians could see the average price of a liter of gasoline rise to $2 again.

“Count on it,” he said.

McTeague said the relief at gas stations in recent weeks will be short-lived, warning that gasoline prices will start to rise later in January, with $2 a liter becoming an average price in Ontario and other provinces.

“We had a pretty good (race) in December,” he said. “The world got very nervous about rising interest rates, demand destruction and COVID lockdowns in China. And all of that played a very strong role in keeping prices in check and pushing them up. down,” McTeague said.

“Colder weather will put pressure on diesel and natural gas, which in turn will put pressure on oil and ultimately gasoline prices. And that could start to emerge in the second or third week of January,” he added.

He said that by the end of April, prices could be back to just below $2 a liter, with factors such as the federal carbon tax increase that month.

According to Statistics Canada data, the average price of regular fuel in Canada was $1.31 per liter at this time last year, when driving trends were much lower as Canadians struggled with the spread of Omicron.

As demand increases, experts say supply caps will keep prices going higher.


Food prices in Canada are not likely to improve much either. According to the latest Dalhousie University food price report, grocery costs are projected to skyrocket by as much as seven percent in 2023.

The report anticipates that a family of four will have an annual food expense of up to $16,288.41, “an increase of up to $1,065.60 over the total annual expense [in 2022.]”

“We had hoped to have better news for Canadians, given the difficulties experienced in 2022, but our models tell a different story,” the report says.

He noted that the war in Ukraine plays an important role in increasing food costs, as a result of disruptions in three main staples: wheat, sunflower oil and fertilizers. The latter of these plays a major role in lower crop production on Canadian soil, leading to an estimated six to eight percent increase in costs this year.

The report explains that limits on wheat and sunflower oil are also a big contributor to supply not meeting demand, which will continue to be a problem as Western sanctions block Russian exports.


There is good news for Canadians, though, and it’s about housing affordability, as experts anticipate a continued correction trend, which has been going on since summer 2022.

“Sales and prices are contracting particularly sharply in Ontario and British Columbia,” noted an August economic outlook report by Desjardins.

“Nationwide, we expect a decline of approximately 23 percent in the median home price between February 2022 and December 2023,” he said. “And despite the rapid pace of decline, we continue to believe that home prices will end up in 2023 above their pre-pandemic levels nationally and in every province.”

According to a TD Bank report, the median home price in Canada could drop 20 to 25 percent from the first quarter of 2023.

Data revealed by the Canadian Real Estate Association (CREA) showed median prices reached $629,971 in July, which is a five percent drop from $662,924 a year earlier. This equated to a three percent drop from June.

As TD economist Rishi Sondhi wrote in the report: “The price decline represents an unprecedented decline dating back at least to the late 1980s, when the data began, but follows an equally unprecedented rise during the pandemic”.

He added that the forecast “can more accurately be described as a recalibration of the market, rather than something more severe.”

With files from

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